The Japanese Ministry of Finance faced pressure after a strong JOLTS (Job Openings and Labor Turnover Survey) report sparked a surge in the value of the US dollar and prompted a sell-off in bonds. This resulted in a rapid drop in the USD/JPY exchange rate from 150.00 to 147.40. However, after the market absorbed this action, there was significant dip buying, leading to a bounce back to 149.33 before settling at 148.80. Despite intervention by the MOF to buy US dollars, the rally in the dollar continued as 10-year yields reached a new cycle high. In response, AUD/USD fell to its lowest level of the year, while EUR/USD also declined but fared better than other pairs.
Adding to the uncertainty in the market, the US House of Representatives voted to oust Speaker Kevin McCarthy in a late-day development. This news contributed to the overall market instability.
Traders and investors closely monitored these events as they unfold, particularly given the impact of the strong JOLTS report on the dollar’s value and the subsequent reaction in various currency pairs. The MOF’s intervention did not succeed in halting the dollar’s rally, and the market remained on edge due to the political upheaval in the US House of Representatives.